Bitcoin (BTC): MicroStrategy, $ 330 million gone up in smoke (theoretically)

Bitcoin (BTC): MicroStrategy, $ 330 million gone up in smoke (theoretically)

The fall in the price of rí crypto brought with it the loss of bitcoins from MicroSstrategy. After purchasing approximately 129,218 BTC, Michael Saylor’s company would, in theory, lose $ 330 million.

On paper, MicroStrategie shows a very significant loss in bitcoins (BTC)

At the stage where we are, with the price of bitcoin falling, MicroStrategy reportedly lost $ 330 Million BTC Equivalent. Since Cointribune has never stopped reporting the purchase of this business intelligence (BI) software company, there is a reason to give you all of its bitcoin holdings.

MicroSstrategy currently holds 129,218 BTC purchased at an average price of $ 30,700 per coin. However, the current price of bitcoin is $ 28,200. A quick calculation would show a bitcoin loss of $ 330 million for this company. But it is very important to mention that this loss would not come from the sale of cryptocurrencies.

At the same time, the fall in the crypto markets also affects the share price of MicroStrategy. Over the past few days, it has fallen sharply to the point of approaching $ 168 last Wednesday. In essence, the reduction is estimated at 45%.

MicroStrategy, a pro-bitcoin

Famous crypto enthusiasts include MicroStrategy and its CEO Michael Saylor. Not only did the latter inspire his team to acquire bitcoins, but he never hesitated to oppose any cryptocurrency that did not skimp on criticism.

MicroStrategy made its first purchase of BTC, which was subsequently integrated into its balance sheet, in August 2020. From time to time, Saylor said bitcoin is a better asset to public funds because it is deflationally by design.

Here is what he said at the time:

For it is defective at 21and century. It boils down to a very simple principle. It will depreciate 2-4% per annum, certainly over the next hundred years. »

As for the dollar, Mr. CEO had no hesitation in denying the expansion of monetary policy and inflation, and their effects on purchasing power appear to be irreversible.

So hope for bitcoin. Her recent tweet only confirms this:

One thing is more important than the rest. #Bitcoin. »

MicroStrategy has often stated that it will not stop buying bitcoin regardless of how its price changes. In other words, she has been committed to this cryptocurrency for quite some time.

During an interview with The Block in late 2021, Saylor 2 presented the company’s strategy:

  • developing its enterprise software publishing activities;
  • investing in bitcoin (BTC).

Here is Michael Saylor’s precise statement on the second point:

[Nous allons] we invest our extra cash flow in bitcoin, and keep it long – term. »

Is it still valid after suffering this heavy loss in bitcoin? Time will tell us.

MicroStrategy, bitcoin debt and loss

The American firm’s bitcoin bets required more than $ 2 billion in funding. How do you think MicroSstrategy was able to pay this huge sum? Three convertible and guaranteed loans.

The software maker recently took out a $ 205 million bitcoin-backed term loan from Silvergate Bank, through its subsidiary MacroStrategy, to repurchase BTC.

Imperturbable as ever, Michael Saylor seems unconcerned about the current state of his company. Neither the price nor the loss falls in BTC. Her tweet posted earlier that week informed us MicroStrategy keeps 115,109 bitcoins payable. So if the king price of cryptocurrencies falls below $ 3,562, the company will “ it may lodge other guarantees “.

Note that MicroStrategy is not the only company that has suffered a loss in bitcoin on paper. In fact, El Salvador, a country owned by BTC, and Tesla, Elon Musk’s company. Except that the current turmoil in the cryptocurrency market would do “on paper” damage. Saylor has strong reason not to worry about this time.

Source: The Crypto Block

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